You’ve listed your car and you’ve found your buyer – now is the time to close your deal. Modern marketplaces require that you do more than just handshake the buyer and wave good-bye. The transfer of your vehicle also requires you to file with the motor vehicle department of your state and other local agencies. This requires an accurate, well-written bill of sale. The enclosed documents and instructions can be used to confirm your arrangement and prepare you for the registration of your vehicle and title.
A bill of sale can be thought of as a receipt. It proves that ownership of a specific piece of property has changed hands. It details the terms and conditions of the sale, which include the price, delivery and condition. The bills are used to determine the legal owner of a vehicle. Additionally numerous states and counties make use of these documents to determine the amount of sales tax owed on the transaction, if there is any.
Related: Using Vehicle Bill of Sale
By following the guidelines in the enclosed template, you can draft a written acknowledgement of the rights and responsibilities that you transfer during the sale. This document will be used as proof regarding your ownership rights and obligations. You will then be able to create an accurate document of title.
2. Dos and Don’ts Checklist
- Getting the correct name and physical address of the person who is not a party in the deal is crucial. If you have questions regarding property title, it is important to contact the company or person.
- You must provide a completed bill to the buyer when you have received all your money. The invoice should declare that you’ve received payment. You can recover any outstanding payments if the buyer provides written evidence that they have fulfilled their obligations to pay.
- The attached bill of sale presumes that all payments for the car’s purchase price are made on the day of the sale. The buyer may make a down payment at the time of purchase and then pay the remainder over time. The promissory note is not included in the package. The bill of sale must reflect the delayed payment.
- Two copies must be signed, one for you and the other for the bill of sales.
- Although it’s not required, you might consider having a third person accompany you to the signing of the bill. The third party could be utilized to provide information on the transaction in the event of questions. You and the other side can notarize each other’s signatures on the document.
- After you’ve signed your bill, go to your county clerk or tax office and record the transaction. The clerk or tax office will use your bill of sale to estimate the amount of your tax on sales (or use) tax and then record the transaction.
- The seller should contact his state Department of Motor Vehicles new york bill of sale as soon as possible after the sale. Inform them of the vehicle was sold. This will protect the seller in case of a ticket or accident occurring between the sale and the re-titling.
- Both the seller and buyer must submit a copy of their invoice of sale to the Department of Motor Vehicles of their respective states to finish the transfer. Some states require the seller to report the title transfer within five (5) working days. Other states have the buyer reporting the transfer within ten (10) working days.
- Transfer of your vehicle may require additional steps. The car’s pink slip must be handed over to the buyer. To determine what documents are required to be signed, consult your local tax authority and motor vehicle agencies.
- Take the license plate off of the vehicle prior to physically transferring it the buyer. This is required by law in a number of states.
3. The Bill of Sale (Automobile) Instructions
These provisions-by-provision instructions will assist you in understanding the meaning of your bill. You will find the numbers below (e.g. section 1, section 2, etc.) 1, section 2, etc.). These numbers correspond to the contents of the form enclosed. Please review the document in its entirety before starting the step-by-step procedure.
- The location of the saleWrite in the name of the state and county where the sale will occur. If the parties reside in different counties, write the state and county where the vehicle is located.
- Purchase PriceIn the first box, type in the price of purchase. Include the entire cost, including any down payments that may be required to secure the car.
- Names and addresses of partiesIdentifies the parties and their street addresses (not P.O. Boxes Boxes) “Seller” party is the one that is subject to the bill and the “Buyer” party is the one who will purchase it. Note that only the individual whose name is on the title of a vehicle is permitted to offer it for sale. This means that when a couple who is married sells the vehicle, however the car is registered in the name of the wife, only the wife should be the one to sign the bill of sale.
- Vehicle Description and LocationThese sections permit you to describe in detail the car you’re selling or buying. Make sure to be as precise as you can, making sure that the vehicle that is being sold can be identified clearly in the description. It is essential to include information like the address the make, model, and body type.
- Location:Include the address of the current vehicle’s location in the county and state.
- You can create:Ford, Chevrolet Lincoln Lincoln, BMW
- Model:Corvette, M5, Mustang and others
- Type of body:Sedans, Coupes, Convertibles SUVs, Sedans, Convertibles,
- VIN:The unique 17-character identification number is called the Vehicle Identification Num (or “VIN”). In general, the VIN can be found in one of the following places such as the dashboard, the steering column; vehicle’s firewall; driver side door; or passenger side post. If you cannot find your VIN, refer to the owner’s manual.
- Section 1: Seller’s Representations & Warranties.The Seller’s promise to the Seller that it controls and owns the vehicle.
- Section 2: Buyer’s Representations as well as Warranties.The Buyer’s agreement that the person who signs the bill of sale has the authority to sign the bill.
- Section 3: No Other Warranties.Disclaims any warranty other than the title warranty described in Section 1 and the manufacturer’s warranty (if there is one). This vehicle is being sold “as-is. Buyers should note that if there are any problems with the car in the future, the seller explicitly disclaims liability in this paragraph.
- Section 4: Inspection.This is a brief summary of the most recent mechanical inspections. Attach a report detailing the inspection, if the vehicle was examined within the last month. If it is not, remove the sentence in the second.If there are any issues with the car, the seller must notify the buyer of the issues. In the event of not reporting known defects, it could result in the sale being invalidated. This could also lead to fraud charges. If no defects are known, the empty space may be removed.
- Section 5: Delivery to VehicleExplains where and when the vehicle should be picked up by the Buyer. You may also indicate the day you’d prefer to have this happen.
- Section 6 Conveyance of TitleThis section states that the title of the vehicle will be transferred to the buyer upon receipt of the vehicle. This section also includes the Seller’s agreement to sign all necessary documents to complete the transfer of title.
- Section 7: Cancellation and TagsThe Seller’s agreement that any remaining insurance or tags it was keeping on the vehicle will be cancelled.
- Section 8: Additional TermsIf you have additional conditions you’d like to add to the form, enter those in the box that is provided. For instance, parties might want to specify that the car must be thoroughly cleaned before delivery.
- SignaturesEvery party has to sign the name and then print it. Several states require that each party include a contact number, too. Even though it might not be mandatory in your particular state, it is suggested that both parties give as much information as feasible. The document should be dated. There are a number of important deadlines that start with the date of sale. Transfer of title and registration
If a third party witnessed the signing, have the person sign and date the area provided. The segment could be removed if there no witnesses.
- Statement on the OdometerFederal and state laws require an accurate report of the vehicle’s miles on its bill of sale. Some states require disclosure statements to be separate from the bill. This separation was made possible by the enclosed form.
Write in the seller’s name and the number of miles that the car has. In your report of the current readings of the odometer, do not contain more than tenths of a mile. If the vendor has verified the reading, don’t look over any blank lines that are beneath the initial paragraph. If the odometer is reading five digits, but the mileage report is inaccurate, you should inspect the first line. The reason why the odometer stopped working after 99,999 mile, it will need to be rolled over. For example, if the reading is “10,000,” but the actual mileage is 110,000, then the seller should note the number “10,000” and then check this line.
If the seller knows that the odometer number is not correct or the odometer has been damaged, they must inspect the second line.